Central Sav. Bank & Trust Co. v. Oilfield Supply & Scrap Material Co.

HIGGINS, Justice.

The holder and owner of a certain promissory negotiable chattel mortgage note instituted suit against the endorsers in due course, for value thereof, in solido.

The defense is that the holder of the note, knowingly and through “extreme negligence” permitted the mortgaged chattel to be sold under a subordinate lessor’s claim and lien and intentionally did not intervene in the suit by the lessor against the maker of the note, and deliberately refrained from notifying the defendants of the seizure, thereby depriving them of an opportunity to preserve the collateral security, and…